Domicile

xdragr · July 8, 2015

I am wondering which state to call my home base. I know that there is TX SD and FL.

I would like to know the benefits and the major issues of living in the 3.

Rif · July 9, 2015

In addition to any responses you receive to this question here, I suggest that you enter the following search string into the Google search bar. There are hundreds of topics on the forum where this has been discussed and some of them may be helpful to you. Using Google as your search engine is far superior to using the forum search engine.

domicile site:rvnetwork.com

Kirk W · July 9, 2015

None of the three states that you suggest have any state income tax nor do any of them require that you live in the state for any period of time. In addition all three of them are happy to accept your mail forwarding service address for your driver's license, vehicle registrations, and insurance. Both FL & TX accept your mail service for voter registration and SD will let you us the address of the RV park where you stay when there for other purposes. Each of the states have differing laws on the issues of estates & wills, divorce, health directives, and a host of other things which could be important.

If you plan to wait to buy until you get your domicile, SD has a 4% sales tax paid when registering, TX has a 6.25% sales tax when registering a new vehicle, and FL applies a 6% sales tax to new vehicles. All three states have provisions where bringing in a previously registered vehicle lowers or eliminates the sales tax paid.

Many people choose which of the three based mostly upon which one will cost most but that is sometimes deceiving since insurance costs differ from state to state both for vehicles and for your health. Over the years I have observed that the state costing least for insurance will not be the same for every person, depending upon things like driving records, credit ratings, health history, and a long list of other things which should be considered. It is not possible to tell for sure which state will cost you least for these things so you must investigate that on a personal basis. In addition, if you are not Medicare eligible, there are far fewer insurance companies available in SD than in the other two. In your case you also need to take a look at the laws with regard to home schooling sine they do vary. I happen to know that TX does not regulate this, but can't speak for either of the other two.

If you expect to be a fulltimer for a very long time it could also be important which state you choose based upon distance for you to travel as everyone will at times need to visit their place of domicile. Another thing to consider is what state do you expect to return to when/if you stop traveling after a period of time. I strongly suggest that you read this article on the subject of choosing a domicile from Escapees magazine, before you make your choice. I suspect that most people make their choice of domicile based upon rather superficial examination of differences and for most there is never a major problem from it but for you it is probably more importance since you are much younger than most of us and it also will involve your children.

Keep in mind also that there are other states besides those three which are sometimes chosen as a home base, besides the three most popular ones. There are many important things to be considered so I hope that you examine the choices very carefully and not choose by which state is most popular with we retired folks but base it upon your own personal circumstances. If you plan to return to your present home state, it may even be wisest to find a way to keep your domicile where it is now. Most people never have any legal issues relating to the choice of domicile, but when they do that choice could be very important.

LindaH · July 9, 2015

If you are not yet of Medicare age, South Dakota probably won't be a good choice since it's pretty much impossible to find health insurance if you aren't physically present in the state for at least 6 months per year...and most (all?) of the insurance companies will not accept a mail forwarding address. If you ARE able to find pre-Medicare health insurance, it will be very expensive!

JRP · July 9, 2015

"" Both FL & TX accept your mail service for voter registration and SD will let you us the address of the RV park where you stay when there for other purposes. ""

This sentence in Kirks script keeps getting repeated, but unfortunately its not true. It may have been true 10 yrs ago in one specific SD county, but for several yrs the RV park where you stay has nothing to do with registering to vote in SD. Just like Fl & Tx your SD mail forwarding address is your "home" address, including voter reg. The RV park where you stay to satisfy the one night requirement for the exception from the Real ID Law can be anywhere in the entire state and has no impact on where you reg to vote.

LindaH · July 9, 2015

The RV park where you stay to satisfy the one night requirement for the exception from the Real ID Law can be anywhere in the entire state and has no impact on where you reg to vote.

It does...at least it did when we became SD residents.

We used Alternative Resources in Sioux Falls and when we went there to get driver's licenses, we stayed at (I believe) the Red Barn RV Park. Unbeknownst to us the RV park was not in the same county as Sioux Falls so we were not able to register to vote. We came back the next year, stayed in an RV park in the same county as Sioux Falls and only then were we able to register to vote.

sandsys · July 9, 2015

It does...at least it did when we became SD residents.

We used Alternative Resources in Sioux Falls and when we went there to get driver's licenses, we stayed at (I believe) the Red Barn RV Park. Unbeknownst to us the RV park was not in the same county as Sioux Falls so we were not able to register to vote. We came back the next year, stayed in an RV park in the same county as Sioux Falls and only then were we able to register to vote.

Like Jim2 said "Did" does not mean "Does". Rules have changed a lot in the last few years so what worked for us in 2008 has no relevance for those doing it now. That's why I've stopped answering this question except to raise the question.

Linda Sand

July 10, 2015

Here is a site that you may want to consider in making your decision - http://taxfoundation.org/blog/real-value-100-each-state-0

JRP · July 10, 2015

Here is a site that you may want to consider in making your decision - http://taxfoundation.org/blog/real-value-100-each-state-0

That's an interesting chart. But if I understand it, its based on the value of goods $100 will buy within each state. Since most fulltimers rarely visit or buy goods within their domicile state, I'm not sure its very critical to picking a domicile, except those planning to be stationary. But worthwhile info when shopping on the road.

sandsys · July 10, 2015

I remember my Mom coming from Denver to visit in Minneapolis. She went to buy our daughter a dress that was $9.99. She got out a ten and a five. Didn't need the five. No tax on clothes in Minnesota. No tax on groceries, either, if they are edibles that need to be prepared. Individually packaged snack foods and paper goods are taxed, though.

Linda Sand

July 11, 2015

That's an interesting chart. But if I understand it, its based on the value of goods $100 will buy within each state. Since most fulltimers rarely visit or buy goods within their domicile state, I'm not sure its very critical to picking a domicile, except those planning to be stationary. But worthwhile info when shopping on the road.

Jim2 - I think that you may have only looked at the first page of this thread. Click on the area that reflects "All Maps" and you will find additional information. The question was about the benefits of the selective states indicated by the OP. I found that the big three states are not necessarily the best choice for me. What I would save in state income tax, I would spend in AC/costs and bug spray. Depends on what is finantially important to you.

Kirk W · July 11, 2015

What I would save in state income tax, I would spend in AC/costs and bug spray. Depends on what is finantially important to you.

For a fulltimer that would only be an issue if he were to for some reason spend a lot of time in his domicile state, but if actually traveling most of the year such things would be whatever it happens to be where they are this time....

PS: Casey I just noticed your SKP number! You must be one of the most senior folks on the forum. Mind sharing with us when you joined the Escapees?

sushidog · July 11, 2015

Looking at the map of where folks take their retirement income, it seems that 31.4% of the residents of Polk County are retirees - the highest in TX. Coincidence?

http://taxfoundation.org/blog/where-do-americans-take-their-retirement-income

Chip